as1415

@DDrolapas There’s needs to be an accounting standard or regulatory body like SEC that is required by lenders. Not required by law but if an owner wants to sell to the largest buyer pool then they must use accounting standards set by the governing body

I think there should be fines implemented for putting the rent and expense info wrong on a commercial deal in the MLS. This happens all the time and would offer more comp transparency to the industry. For instance, there are deals that get marketed at 6 caps because they factor in current owners prop 13 property tax base. It's more like a 4 cap with actual correct underwriting.

@credealjunkie If it’s that great of deal why aren’t they taking it to market?

Just got quoted a 5% buyers rep fee for an off market deal. Is anyone pay that level of fee? Context: $5 million deal, in my market but outside my regular product type so it’s genuinely not something I would have seen otherwise.

@robbiehendricks Did he have it under contract when he brought it to you? Is that a requirement?

We had someone bring us a 300+ unit deal last year off market. Exceptional basis and location, very neglected asset. Will be all-in for around $16-17M. Value at stabilization should be $35M. For bringing us the deal, we gave him a big chunk of the GP. Over the life of the deal, I’d estimate that he’ll make around $1.5M between cash flow and sale proceeds. Please feel free to think of us when you have a deal on the hook that you’d like some help on closing. We take good care of folks and we’re happy to do it for the right deal. Buy Box Breakdown: • Cincinnati Columbus Dayton Indianapolis Louisville Lexington and surrounding submarkets. Tertiary markets near those cities are good, too. • 80+ units ideally, portfolios of smaller properties is fine. • C & B property in (ideally) B locations. Ideally 1980s+, but we'll look at 60s-70s in decent areas. • We are conservative underwriters, so with sincere respect, please don't send broker OMs that ignore property tax reassessments and silly goose things like that. We don't get caught on that stuff, so better to just market it publicly. • But when you do bring us a good one, we close. We only retrade supermaterial issues like structural stuff that blows up the underwriting. Can provide references from every broker we've dealt with and all sellers. • Can close cash up to about $10-15M if that moves the needle. • Can underwrite and get an LOI out within 24 hours. Happy to chat about it in the DMs and schedule a call. Onward!

@credealjunkie What’re you passing on?

@credealjunkie Didn’t it already come out

@regardingsemi This is how you do research. Speaking with sales reps.

$SNOW is going to murder earnings tomorrow. AI has opened up an abstracted data and BI layer inside every enterprise that previously didn’t exist. Cortex is an incredible product too. I was talking to a Snowflake sales rep at a conference last month, and they said they’ve never been busier. Earnings will kill, what the market reaction will be...I'm not sure.

@credealjunkie Like a cash flow split from day 1 or something similar. It makes no sense that a 2x return can make more than a 3x return for the GP.

@_0ldtimer_ What’s something better? Weird segment of the market it kind of fits. Getting shrunk all the time though may be only a matter of time

A nuance on doing super low/no leverage deals as a GP. Low leverage means lower IRR, so it’s harder to hit the spread over pref that gets you into the promote. Lower risk for the LP, lower upside for the GP for the same work. Doesn’t mean these are bad deals to do, but there’s a reason many GPs push highly leveraged and structured deals - they’re generally incentivized to do so.

@FundamentEdge Are you aware of any agents that can run qualitative screens across transcripts, filings and presentations? Any public document essentially. Would be great to be able to see which companies have accounting flags and then have commentary in footnotes/MD&A related to the issue

As an analytical showcase, I had my agents create a ~140 page IPO primer on SpaceX $SPCX ahead of IPO in 2 weeks. This is NOT meant to be investment advice and while I ran validation agents on this document, I would be surprised if there are not some errors in these pages. These reports will become even more powerful with an institutional grade data stack and deterministic validation. That said, to me, the ability of agents to create reports like this with effectively the touch of a button is a powerful exhibition of how far agents have evolved. Full document available for download in replies. (Love any feedback on document in the replies, this is a highly iterative process, as always!)

@neppy 20-21 yr old is the graduate age for undergrad. 24yr olds should be earning 30% more than entry level roles

@ThinkAppraiser They do. Unless earnings are growing faster than the stock price the valuation is becoming more rich and less attractive for fresh capital

Honest question: if people make a lot of money with solid stocks, why don’t they just reinvest more money into those solid stocks? Why are people constantly chasing the next hot stock?

@credealjunkie Good. They can’t have it all go their way

@credealjunkie @threadreaderapp unroll

@ThinkAppraiser Why do you have to be single?

If I was single and lived near this area, I’d invest here if the rents made sense Only a matter of time before the home prices here shoot up

@Cincy231 @realEstateTrent No it’s an indication of the amount of capital needed to raise.

@realEstateTrent I always thought GP incentives are misaligned with LPs. For example, acquisition fees are a percentage of the purchase price. Therefore the higher the purchase price, the bigger the fee, but high purchase price is no indication of how good a deal is.

Most GPs are just making macro bets

@shawngorham @grok what is this referring to

Watching Jacob and Brandon defend themselves this weekend is a masterclass in what not to do

@coleruudjohnson Pics or it didn’t happen

$700,000 fee on a multi-family building. $350,000 fee on a self-storage facility. $175,000 on a single-family house. If you're an investor (SFR, Land, or Commercial) & want to find the deepest discounts on deals in your market, you'll want to bookmark this. I'm going to give you 3 steps that if you follow, you can have homerun properties like the ones above in your pipeline next week. 1) Data Deep Dive There are a few tools our clients & us are using to source the deals like the ones mentioned above & pictured below. -- Scraping hot leads from the county daily. We built a tool internally, which we call Atlas, by using Manus to build a scraper that runs 24/7 to pull hot leads from our county. (Probate, Divorce, Fire Damage, & More) -- Property Condition Ranking. We used Manus + CHAT GPT 4o + Google Streetview & Satellite image API to rank residential & commercial assets based on exterior condition from 1-10 (Takes about 2 hours to build) -- We then pull general records from List Source for residential, Data Tree for land, and Reonomy for Commercial properties. -- We clean up all of this data with Open Corporates & Easy Button Skip-Trace to get behind LLCs and find real property owners, and get accurate contact information. Store all of this data in a system like REI Sift, and your data environment is in a good place. 2) Marketing -- Outbound dialing works amazingly for all asset classes. Follow TCPA rules, & then hammer the phones. My real estate company currently employs anywhere from 20 to 50 agents, who we pay $4.50 / hour each to make dials for us. Some days we get 30+ leads. -- For single-family & land targeted direct mail to any properties that show up on 2+ lists at the same time is life changing. You can mix in PPC as well once your budget is above $10,000 / month. FB ads can work too. -- For commercial, using video postcards that you can order in bulk from Alibaba, which play a video when they open it will increase conversion rates big time. 3) Inking Contracts All of the above works if you work your pipeline. You can follow every step here, but if you don't work with each seller and build real relationships and solve real problems, it doesn't matter. P.S. -- I'm doing a free live Zoom call this coming Tuesday, the 26th, walking through all of this and a ton more If you aren't sourcing as many deals as you'd like, you'll want to be there. (Link below in the comments)

Massive untapped real estate opportunity: Lack of supply of high-end suburban small office suites. This is why demand for WeWork was so high. But if you're a CPA, attorney, wealth manager, or therapist, you don't want co-working. We just did this, and it's crushing it!

@credealjunkie Like it’s decelerating? Too be expected as comps get tough. Maybe even negative growth isn’t unreasonable

@_0ldtimer_ It’s flipping though

This is city of San Francisco story with some spillover into Silicon Valley. East Bay and North Bay still slow. Here’s the city by city breakdown.